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Construction Statistics from Approved Building Permits for Year 2014 (Final Results)

Reference Number:

2015-051

Release Date:

Saturday, August 29, 2015

TABLE A Comparative Construction Statistics

2014 and 2013

(Details may not add up to total due to rounding)

Type of Construction

2014

2013

Total

Number

126,875

120,775

Floor Area (sq.m.)

28,668,823

24,637,275

Value (PHP '000)

366,551,523

293,136,032

Residential

Number

90,201

87,767

Floor Area (sq.m.)

14,935,518

13,672,027

Value (PHP '000)

152,755,734

133,783,612

Non-Residential

Number

15,191

14,622

Floor Area (sq.m.)

12,811,930

10,278,621

Value (PHP '000)

184,873,176

135,163,094

Addition

Number

6,207

5,184

Floor Area (sq.m.)

921,375

686,627

Value (PHP '000)

7,396,115

6,070,505

Alteration and Repair

Number

15,276

13,202

Value (PHP '000)

21,526,498

18,118,820

Number of constructions posts 5.1 percent growth in 2014

The country’s total number of constructions generated from approved building permits for the year 2014 totaled to 126,875. This number increased by 5.1 percent compared to 120,775 constructions in 2013.

Residential constructions grew slightly by 2.8 percent to 90,201 from 87,767 recorded in 2013. The minimal increase in the number was caused by the decline in the construction of single-type houses (0.5%) and other residential buildings (19.7%). While, construction of duplex/quadruplex-type houses showed a remarkable increase of 175.4 percent. Other types of residential constructions that showed increments in number were residential condominium (8.6%) and apartment/accessoria-type buildings (3.9%).

Similarly, non-residential constructions numbering to 15,191 went up 3.9 percent from 14,622 recorded in 2013. The increase in number was brought about by the growth observed in the construction led by agricultural (36.8%) and industrial (9.2%), institutional (9.1%) and commercial (7.2%) buildings.

Furthermore, addition to existing structures exhibited a 19.7 percent growth in 6,207 construction projects from 5,184 in 2013. Alteration and repair of existing structures with a total of 15,276 rose 15.7 percent from 13,202 recorded a year ago. Figure 1 compares the number of constructions by type for years 2014 and 2013.

The top three regions, in terms of the share in the number of constructions, were all located in Luzon area comprising 46.1 percent of the total. CALABARZON led the regions where a total of 29,092 (22.9%) constructions were located, followed by neighboring regions of Central Luzon and National Capital Region (NCR) with 16,047 (12.6%) and 13,381 (10.5%) constructions, respectively. Central Visayas, recording the most number of constructions in the Visayas area, placed fourth with 12,440 (9.8%). Davao Region, having the largest count in the Mindanao area, ranked fifth with 11,500 (9.1%) constructions. Figure 2 shows the distribution of constructions by region.

The top ten provinces in 2013 remained the top ten in 2014 except for Compostela Valley. Compostela Valley jumped to 10th place in 2014 from rank 40th in 2013 outranking Pampanga. These top ten provinces comprised 43.7 percent of the total number of constructions.

Cavite continued to occupy the top slot in terms of the number of constructions with 10,020 or 7.9 percent share to total. Ranking second and third were Bulacan and Laguna with respective shares of 7,297 (5.8%) and 6,504 (5.1%) constructions. Completing the top ten provinces with the most number of constructions were as follows:

Batangas with 6,041 (4.8%)

Davao Del Sur with 5,576 (4.4%)

Bohol with 5,164 (4.1%)

Rizal with 4,621 (3.6%)

Cebu with 3,681 (2.9%)

Negros Oriental with 3,465 (2.7%)

Compostela Valley with 3,055 (2.4%)

Among the top ten provinces, Compostela Valley posted the largest increase in the number of constructions, higher by 234.2 percent from the 914 projects registered in 2013. The increase in number was mainly attributed to the construction of duplex/quadruplex-type residential houses in the province.

Total value of construction increases by 25.0 percent

Total value of construction reached PHP366.6 billion in 2014, representing an increase of 25.0 percent from previous year’s construction value of PHP293.1 billion.

Value of non-residential construction, accounting for more than half (50.4%) of the total, surged 36.8 percent reaching PHP184.9 billion from PHP135.2 billion registered in 2013.

Likewise, construction value of addition to existing structures amounting to PHP7.4 billion rose 21.8 percent compared with PHP6.1 billion recorded in 2013. Alteration and repair of existing structures estimated at PHP21.5 billion went up 18.8 percent from PHP18.1 billion recorded in 2013. Figure 3 compares the value of constructions by type for years 2014 and 2013.

The top 3 regions in terms of the number of constructions were also the top three in terms of the value of constructions with a combined amount of PHP270.7 billion or 73.9 percent of the total. NCR, ranking third in the number of constructions, consistently remained highest with construction value estimated at PHP189.2 billion accounting for more than half (51.6%) of the total. This was distantly followed by adjacent regions of CALABARZON and Central Luzon with respective shares of PHP56.6 billion (15.5%) and PHP24.9 billion (6.8%).

Western Visayas which ranked sixth in 2013 occupied the fifth slot in 2014 displacing Davao Region. Construction value for this region amounted to PHP14.8 billion (4.0%).

Average cost of residential-type building is PHP10,228 per square meter

Total value of residential construction in 2014 was estimated at PHP152.8 billion with a total floor area of 14.9 million square meters, equivalent to an average cost of PHP10,228 per square meter. This figure is 4.5 percent higher than the average cost of PHP9,785 per square meter recorded in 2013.

Among residential constructions, single-type houses recorded the most number with 75,627 constructions or 83.8 percent of the total. Total value of construction for this type was estimated at PHP63.1 billion with a total floor area of 7.3 million square meters, resulting to an average cost of PHP8,626 per square meter.

Apartment/accessoria-type units ranked a far second with 10,379 projects representing 11.5 percent of total residential construction. This type of construction had an estimated value of PHP22.7 billion with total floor area of 2.9 million square meters or an average cost of PHP7,715 per square meter.

Duplex/quadruplex-type residential dwellings totaled to 3,859 projects or 4.3 percent of total residential construction. Total construction value for this type was PHP2.7 billion with a total floor area of 353.1 thousand square meters or an average cost of PHP7,756 per square meter.

Residential condominiums numbering to only 165 had construction value of PHP64.0 billion and a total floor area of 4.3 million square meters. Average cost per square meter for this type was PHP14,899, the highest among the residential constructions. Figure 4 displays the distribution of the number and value of residential constructions by type in 2014.

Average cost of non-residential construction up by 9.7 percent

Total value of non-residential construction in 2014 summed-up to PHP184.9 billion with a total floor area of 12.8 million square meters. This translates to an average cost of PHP14,430 per square meter or an increase of 9.7 percent compared with previous year’s average cost of PHP13,150 per square meter.

Commercial-type buildings dominated all other types of non-residential constructions with 9,324 accounting for 61.4 percent of the total. Value of construction for this type amounted to PHP132.6 billion with a total floor area of 7.8 million square meters or an average cost of PHP16,953 per square meter which is the highest among the non-residential type.

Institutional-type buildings followed next with 2,930 or 19.3 percent share of the total non-residential construction. Construction value for this type was PHP21.5 billion and with total floor area of 1.9 million square meters, translating to an average cost of PHP11,415 per square meter.

Industrial-type buildings placed third with 1,869 projects (12.3%), construction value of PHP26.4 billion and total floor area of 2.3 million square meters or an average cost of PHP11,444 per square meter.

Agricultural-type constructions with 762 projects made up only 5.0 percent of the total non-residential construction. Construction value for this type amounted to PHP2.1 billion covering a total floor area of 794.4 thousand square meters or an average cost of PHP2,654 per square meter. Figure 5 shows the number and value of non-residential constructions by type in 2014.

TECHNICAL NOTES

CONSTRUCTION STATISTICS FROM APPROVED BUILDING PERMITS

Introduction

This Special Release presents the final data on construction statistics from approved building permits for the year 2014.

The final data set provides updates to the 2014 Quarterly Special Releases on construction statistics. The sources of updates are additional approved building permits collected after cut-off dates because of data collection constraints. These additional documents were not yet available for inclusion in the quarterly tabulation of data on designated target dates.

For this publication, data for the province of Sulu from the Autonomous Region in Muslim Mindanao (ARMM) is not included in the tabulation as this province did not submit any approved building permit document and certification of no construction during the reference year.

Annual final tables are presented in Tables 1 to 5, while quarterly final tables are presented in Tables 6 to 9.

Scope and Coverage

Construction statistics from approved building permits relate to administrative-based data on new constructions and additions, alterations and repairs of existing residential and non-residential buildings and other structures proposed to be constructed in all cities/municipalities of the country in a specific period.

Sources of Information

Construction statistics are compiled by the Philippine Statistics Authority (PSA) from the copies of original application forms of approved building permits as well as from the demolition and fencing permits collected every month by PSA field personnel from the Offices of Local Building Officials (LBOs) nationwide.

Limitations of Data

Data on building constructions refer to those approved applications during the reference period and not to construction work completed during the reference period.

The completeness of the number of building permits collected relies on the approval of applications filed with the LBOs. Hence, building constructions without approved building permits are excluded in the tabulation of data.

Geographic Classification

Building constructions are classified and presented by geographic area using the Philippine Standard Geographic Classification (PSGC). The geographic codes are in accordance with NSCB Resolution No. 3, Series of 2005 that approved the PSGC.

Industry Classification

Construction statistics utilizes the amended 1994 Philippine Standard Industrial Classification to identify the industrial classification of the structure proposed for construction through its use or character of occupancy.

Collection

The number of building permit forms accomplished by the applicant comes in five (5) copies.

The “NSO copy” of the approved building permit is made available within the first five (5) working days after each reference month. Collections of these documents from the LBO in city/municipality are undertaken by PSA field personnel within this period.

Collected documents for each month are properly checked as to its completeness by verifying the beginning and ending numbers indicated in the permit numbers. Missing numbers are indicated, with corresponding reasons, in the transmittal. In cases where there is no construction in a given month in a municipality, a certification that there was no construction is provided by the LBO to the PSA field staff.

Data Processing

Data processing of approved building permits is done both manually and mechanically. Copies of documents collected from the offices of LBOs are properly controlled, sorted, edited and coded, folioed and encoded in the PSA provincial offices. During machine validation, inconsistent and invalid entries which are flagged in an error listing are corrected in the data file. This process is repeated until there are no more inconsistent or erroneous entries found in the error listing. The data files are then forwarded to PSA Central Office for validation, consolidation and generation of preliminary tables. Data files received after the cut-off dates of submission set for each quarter are included in the generation of annual tables.

Preliminary results are based from data files that have undergone data processing in the provincial offices and have been validated at the Central Office. The preliminary tables are revised to include building permit documents received after the cut-off period in the annual tabulation.

Statistics Generated

Construction statistics generated from approved building permits provide monthly administrative-based data on building construction at the municipality level nationwide. Statistics generated are the following:

number

floor area

type of construction

value of construction

Statistical Tables

The statistical tables are presented at the regional and provincial levels by type of construction and by period according to form of ownership.

Unpublished Data

Aside from the preliminary tables posted in the PSA website, annual, quarterly and monthly statistical tables at the municipality level by type of construction and by form of ownership are available at the Industry Statistics Division of the PSA.

Other special tabulations may also be made available upon request, addressed to the National Statistician, Philippine Statistics Authority, 3rd Floor CVEA Building, East Avenue, Quezon City.

Dissemination

Preliminary and final results of construction statistics generated from approved building permits are made public in the form of Quarterly Special Releases posted in the PSA website (www.psa.gov.ph) 60 days after the reference quarter and Annual Special Release, eight months after the reference year, respectively. The Quarterly Special Releases are reports containing the preliminary results of construction statistics generated 60 days after the reference quarter while the Annual Special Release is a consolidated report of the quarterly preliminary data incorporating documents which are submitted after the cut-off dates for each quarter.

Definition of Terms (Adopted from the Revised and Updated IRR of the National Building Code)

Building permit is a written authorization granted by the LBO to an applicant allowing him to proceed with the construction of a specific project after plans, specifications and other pertinent documents have been found to be in conformity with the National Building Code (PD 1096).

Building refers to any independent, free-standing structure comprised of one or more rooms or other spaces, covered by a roof and enclosed with external walls or dividing walls, which extend from the foundation to the roof.

Construction refers to all on-site work done from site preparation, excavation, foundation, assembly of all the components and installation of utilities, machineries and equipment of buildings/structures.

Residential building is a building for which its major parts or more than half of its gross floor area is built for dwelling purposes. This type of building can be of the single type, duplex, an apartment and/or accessoria and residential condominium.

Single house is a complete structure intended for a single family or household, i.e. bungalow, 2-storey house, nipa hut.

Duplex house is a structure intended for two households, with complete living facilities for each; it is a single structure divided into two dwelling units by a wall extending from the floor to the ceiling.

Apartment is a structure, usually of two storeys, made up of independent living quarters, with independent entrances from internal walls and courts.

Accesoria is a one or two-floor structure divided into several dwelling units, each dwelling unit having its own separate entrance from the outside.

Residential condominium is a structure, usually of several storeys, consisting of multiple dwelling units.

Other residential construction consists of school or company staff houses, living quarters for drivers and maids, and guardhouses.

Non-residential building includes commercial, industrial, agricultural and institutional buildings.

Commercial buildings refer to office buildings and all buildings which are intended for use primarily in wholesale, retail and service trades; i.e. stores, hotels, restaurants, banks, disco houses, etc.

Addition refers to any new construction which increases the height or area of an existing building/structure.

Repair is a remedial work done on any damaged or deteriorated portion/s of a building/structure to restore its original condition.

Renovation is any physical change made on structures to increase the value, quality and to improve the aesthetic.

Alteration is a construction in a building/structure involving changes in the materials used, partitioning and location/size of openings, structural parts, existing utilities and equipment but does not increase the overall area thereof.

Conversion is a change in the use or occupancy of structure or any portion thereof, which has different requirements.

Demolitions refer to the systematic dismantling or destruction of a building/structure, in whole or in part.

Floor area of building refers to the sum of the area of each floor of the building measured to the outer surface of the outer walls including the area of lobbies, cellars, elevator shafts and all communal spaces in multi-dwellings. Areas of balconies are excluded.

Total value of construction refers to the sum of the cost of building, electrical, mechanical, plumbing, and others. The value is derived from the approved building permit and represents the estimated value of the building or structure when completed.